Over-the-top (OTT) video services aren't posing any real competition to pay-TV operators for now, according to Brazil's telecom authority Anatel.
“As we understand, it's too soon for video OTT services to replace pay-TV. It's obvious this substitution has already happened in other services as short-messaging, but video platforms are still more a complement than a replacement for pay-TV,” said Carlos Baigorri, head of competition, Anatel, according to Tela Viva. “It's a very incipient market to decide about taxing, the only thing to do is monitoring.”
Baigorri also stated that Anatel understands the solution is not to regulate OTT players, but deregulate telecom services.
“The PGMC will differentiate four competition areas. Towns with the highest levels of competition will be deregulated; we are proposing a drastic reduction of regulations for towns in which there isn't any kind of monopoly,” he added.
Although it seem there are no signs of cord-cutting, Brazil already has one of the most diversified offerings of OTT video platforms in Latin America.
Source: Although it seem there are no signs of cord-cutting, Brazil already has one of the most diversified offerings of OTT video platforms in Latin America.